DOW JONES INDUSTRIAL AVERAGE FUTURES EDGE HIGHER AFTER HOME DEPOT EARNINGS

Dow Jones Industrial Average (DJIA) futures are trading above fair value, as stocks look to extend yesterday's rally. Traders are digesting solid earnings results from blue chip Home Depot Inc (NYSE:HD), which have the Dow stock up almost 2% in pre-market trading. For economic data, housing starts in April fell short of estimates, while oil prices could also be in focus again. At last check, June-dated crude futures were up another 0.7% at $49.17 per barrel, with the dollar sliding on concerns that President Donald Trump shared sensitive information with Russian officials. As such, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) could both take aim at fresh record highs once again. 
 
Continue reading for more on today's market, including:

• 2 ways to trade this market with options, courtesy of Schaeffer's Senior V.P. of Research Todd Salamone. 
• Citron: This healthcare stock "will soon be cut in half." 
• Why it's time to buy options on this blue chip. 
• Plus, Dick's gets drilled; the 3-D printing stock on the decline; and why Etsy is reviewing strategic options.

Futures on the Dow Jones Industrial Average (DJIA) are 26 points above fair value. 

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 993,848 call contracts traded on Monday, compared to 545,842 put contracts. The resultant single-session equity put/call ratio dropped to 0.55, while the 21-day moving average edged down to 0.64.
2. Disappointing same-store sales for the first quarter has retailer Dick's Sporting Goods Inc (NYSE:DKS)stock down 12% in electronic trading. DKS shares have been grinding lower since peaking near $63 in November, settling last night at $47.57. 
3. 3-D printing stock Stratasys, Ltd. (NASDAQ:SSYS) has had a big year, adding 81% in 2017. However, the company's first-quarter results disappointed, sending SSYS stock down almost 8% ahead of the open. 
4. Etsy Inc (NASDAQ:ETSY) is set to add almost 11% when the market opens, thanks to news TPG Group Holding Advisers and Dragoneer Investment Group reported a joint 8% stake in the company. Etsy in response said it's now reviewing strategic and operational plans. ETSY stock closed last night at $11.32, up 31.8% over the past year. 
5. For earnings, Jack in the Box (JACK), SINA (SINA), Staples (SPLS), TJX Companies (TJX), Urban Outfitters (URBN), and Weibo (WB) will also report. Housing starts and the Fed’s industrial production update are due for release.

Overseas Trading

Most Asian markets gained ground today, as oil prices bounced. Also in focus was an interview with Bank of Japan (BoJ) Governor Haruhiko Kuroda, who defended the central bank's monetary easing measures, and said an unwinding of the stimulus program "could be managed quite well." Japan's Nikkei hit a new annual high in intraday action before settling up 0.3%. China's Shanghai Composite jumped 0.8% and South Korea's Kospi added 0.2%, though Hong Kong's Hang Seng settled down 0.1%.

European benchmarks are mixed at midday. Airline stocks are trading lower following disappointing earnings for EasyJet, while automakers are among the biggest decliners after European car sales fell to a four-year low in April. Also on the economic front, the eurozone trade surplus hit a record high in March, while first-quarter gross domestic product (GDP) grew at 0.5%. At last check, the German DAX is fresh off a record high -- trading up 0.05% -- after the ZEW business sentiment indicator rose to its highest perch since August 2015, while London's FTSE 100 is up 0.8% as inflation data pressures the pound, set to notch a new all-time closing peak. The French CAC 40, meanwhile, is down 0.2%.

Article by MagnusYard.